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สาส์นจากนายกสมาคม TRA PRESIDENT VIEW
 
   PRESIDENT VIEW
   Chinese Market
China-Thai relations have been good for decades in various aspects: trade, investment, and tourism. Especially, the natural rubber exports from Thailand to China continually expand. China is by far the largest consumer of natural rubber worldwide and most world tire production, so China's market is an important market to show a market sign of natural rubber demand each year. China’s economic direction is one of the factors which directly affect natural rubber demand and prices. Therefore, it is significant to monitor China’s economy. In 2019, China’s economic expansion is the lowest over 30 years because of the prolonged US-China trade war as well as the stagnant demand of the world. However, China government has rolled out stimulus measures continuously. In October 2019, China government had reduced banks’ reserve requirement ratio (RRR) to promote lending to small and medium enterprises. They also cut various tariffs for the business sector, and reduced VAT, resulting in China’s economic growth over 0.8%. 
In December 2019, China’s Consumer Price Index (CPI) increased by 4.5% compared with the previous year; however, it still lowered than the projection at 4.7%. Meanwhile, in 2020, China will make further efforts in additional tax cuts to improve its tax administration efficiency. Furthermore, China and the US have signed a phase 1 trade deal on January 16, 2020, affecting positive ways to the economy of China, the US, as well as the world’s economy. However, International Monetary Fund (IMF) has reduced the prediction of China’s economic expansion as 5.8% in 2020, which lower than the economic growth rate as 6.1% in the previous year. Nowadays, China’s economy is in the stage of structural reforms to be sustainable economic growth. They try to reduce the country's reliance on debt to stimulate their economy and urge domestic consumption. Although during the reforms China’s Gross Domestic Product (GDP) slowly expands, it is the effective growth.
According to the Association of Natural Rubber Producing Countries (ANRPC), in 2019, China produced 836,300 tons of natural rubber; meanwhile, the natural rubber demand was 5.48 million tons (39% of the world’s natural rubber demand), down 3% compared to the previous year. Furthermore, China imported 5.11 million tons of natural rubber, 50% were mixtures and compound rubber. In the rubber-based product sector, in 2019, China produced 611 million units of all tyres (511 million units were radial tyres), up 1% YoY, and China’s car sales were 26.2 million units (28% of world’s sales), down 8.3% YoY (LMC International Ltd., 2020). It can be inferred that China’s natural rubber consumption is slow down. One of the factors is that China pays attention to environmental policy and has rolled out a pollution control policy to save the environment. Because of the policy, some of China’s rubber manufacturers close down and relocate their production base to ASEAN countries such as Vietnam and Thailand, resulting in an increase in Thailand's natural rubber consumption. To support the increasing of natural rubber domestic consumption, Thai government has rolled out the policy in establishing the Eastern Economic Corridor (EEC), especially in Chonburi and Rayong, in which recently 4-5 China’s tyre entrepreneurs have already established factories and proceeded the production. 
The above data suggests that China’s potential and growth has a positive impact on the economy of ASEAN, especially on the rubber industry. Therefore, Thai government and the private sector should promote trade and investment and international relations with China. In this regard, China Rubber Industry Association (CRIA), one of the leading rubber organizations of China, is to organize China Rubber Conference 2020 under the theme “Ahead by Pooling our Wisdom, Embracing a Splendid Future in the New Era” during 17-20 March 2020 at Shangri-La Hotel, Qingdao, China. It is projected that more than 1,000 people from both government and private sectors will attend the conference.  The Thai Rubber Association is pleased to cooperate with China Rubber Industry Association for the mutual sustainable development of the rubber industry of Thailand and China. I take this opportunity to invite interested parties to attend China Rubber Conference 2020. Details can be fetched at www.criaevents.com
On the occasion of Chinese Lunar New Year 2020, I extend to you and your family our warmest greetings, wishing you a happy Chinese Lunar New Year, your career greater success, your family happiness, and your perfect health and lasting prosperity. Xin jia yu ei Xin ni huad chai!

Mr.Chaiyos Sincharoenkul
President
The Thai Rubber Association 
Monthly of   January  2020     
     
  history  
 
[   March  2019 ]
icon Retrospection and prospection
The current executive committee of the Thai Rubber Association has been in the operation since March 2018. The operation of the executive committee is based upon the following principles: 1) to operate on the principle of transparency and good governance; 2) to corporate with government agencies and private sector both at local and international level; 3) to cherish close relationship with other rubber producing countries, particularly in Asia; 4) to act as a central body between rubber pro...
     [ Read more...]  

[   February  2019 ]
icon Thailand-Indonesia-Malaysia Cooperation on Rubber
Current rubber scenario is expected to slow down in line with global economic growth, mainly affected by trade war between China and the US. Gradual monetary tightening in major developed economies in 2019 is likely to weigh on capital investment and vehicle purchases. This results in weaker rubber consumption demand in contrast with relatively high stock of rubber. Moreover, the rubber price is also unlikely to see a meaningful boost from the recent fall in oil prices due to softening dema...
     [ Read more...]  

[   February  2019 ]
icon Thailand-Indonesia-Malaysia Cooperation on Rubber
Current rubber scenario is expected to slow down in line with global economic growth, mainly affected by trade war between China and the US. Gradual monetary tightening in major developed economies in 2019 is likely to weigh on capital investment and vehicle purchases. This results in weaker rubber consumption demand in contrast with relatively high stock of rubber. Moreover, the rubber price is also unlikely to see a meaningful boost from the recent fall in oil prices due to softening dema...
     [ Read more...]  

[   January  2019 ]
icon Chinese Market

Thailand has had a long-term relationship with China in terms of trade, investment and tourism; especially Thai exports of natural rubber (NR) to China which have continually expanded. China is the world’s biggest NR consumer and tire producer. It is an important market which indicates NR demand each year. Economic outlook of...

     [ Read more...]  

[   December  2018 ]
icon Rubber scenario in 2019

Rubber scenario in 2019 is expected to slow down in line with global economic growth. IMF projected that world economy is likely to grow at the same rate of 3.7% as compared to 2018, mainly affected by trade war between China and the US. Chinese economy is expected to grow at 6.2%, with slowdown being caused by internal restructuring, debt reducti...

     [ Read more...]  


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